Why Most Small Caps Never Make It: The Reality Check on Forever Holds

There's a familiar trap I keep seeing in crypto and broader asset markets—people get emotionally attached to their positions. Buy at any price, average down endlessly, tell themselves "this is a forever hold." The story of $HIMS shows exactly why this mindset breaks.

Here's the uncomfortable truth: statistically, most small-cap assets never graduate to large-cap status. The math doesn't work out. Yet investors keep acting like every position deserves diamond hands until the end of time.

I used to think the same way. "Hold through the noise," I'd tell myself. But that philosophy collapses under real market pressure. Sometimes the right move isn't averaging down for the hundredth time—it's taking the loss, accepting you were wrong, and redeploying capital to better opportunities.

The difference between successful investors and perpetual bag holders? Discipline. The willingness to exit when the thesis breaks. Most retail traders emotionally commit too early and exit too late. They get married to coins, tokens, or stocks when they should stay married to their process instead.

Not every dip deserves to be bought. Not every position deserves forever status. The real edge is knowing when to hold tight and when to let go.